Skin is the vital organ of the human system; however, due to its high exposure to the external environment, it was susceptible to various traumatic conditions. During the time of trauma human body played a significant role in the activation of various biological processes for enhancing the wound healing activity in case of damaged tissues. However, in case of skin tissue defects, to enhance the angiogenesis minimal scar formation, several pharmaceutical products were paving their way into the market. Now a days there was a rising worldwide utilization of several bioactive compounds obtained from terpenoids. Terpenoids are 5-carbon compound isoprene with oxygen-containing functional groups were isolated from several plants demonstrates a wide range of activities such as antioxidant, anti-inflammatory and anti-microbial activity. Furthermore, due to their excellent cytoprotective activity, terpenoids based products had played a significant role in wound healing activity. Moreover, in our study, because of their excellent wound healing capability, we reviewed about the few drug molecules such as Tocopherol, Farnesol, Betulin, Retenoic acid, Coenzyme Q10. However, now a day's terpenoids were utilized in several wound-healing formulations because of their excellent anti-inflammatory, re-vascularization and re-epithelization characteristics. Finally, this review focuses on the role of a few drug products obtained from terpenoids as an ideal topical wound healing agent in modern medicine.